The following schedule was prepared by staff accountant C.B. Sure on completing the verification of a December 31 client-prepared reconciliation of the City Bank General Account in the audit of Bold, Inc.

As a senior on the job, you discuss the work done with Sure and determine:
1. The balance per bank agreed with the amount shown on the bank confirmation received directly from the bank.

2. The deposit in transit was traced to the January bank statement.
3. All outstanding checks were traced to the check register.
4. Adjusting entry 12 was for the collection of a \(\$ 515\) note by the bank; entry 13 was for December bank charges of \(\$ 4.45\).
5. The balance per books agreed with the ledger balance.
6. The final step, done on January 7, was to check the mathematical accuracy of the schedule.
Required:
a. Prepare the bank reconciliation working paper in good form.
b. Prepare the adjusting entries that presumably were made.
c. Prepare a cash lead schedule assuming (1) account number 101, Petty Cash \(\$ 5,000\) (Work Paper A-2-no adjustments) and (2) account number 103, City Bank Payroll \(\$ 20,000\) (work paper A-3-no adjustment).
d. Prepare a partial working trial balance.

Transcribed Image Text:

#102 City Bank-Reconciliation Per bank Deposit in transit Bold, Inc. E-1 Prepared by: Client Reviewed by: C. B. Sure $62,765.18 1,452.20 Outstanding checks: 87.10 619.75 232.90 1,100.00 17.20 472.19 (2,529.14) Other (See AJE's 12 and 13 on cash lead Schedule A) 510.55 Per ledger $62,198.79 Verified